XML 144 R33.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Operating Segment Information
 12 Months Ended
Dec. 31, 2019
Operating Segment Information [Abstract]  
Segment Reporting Disclosure [Text Block] OPERATING SEGMENT INFORMATION
We manage our operations and prepare management reports and other information with a primary focus on geographical area. Our banking operations are managed under their own individual brand names, including Zions Bank, Amegy Bank, California Bank & Trust, National Bank of Arizona, Nevada State Bank, Vectra Bank Colorado, and The Commerce Bank of Washington. Performance assessment and resource allocation are based upon this geographical structure. We use an internal funds transfer pricing ("FTP") allocation system to report results of operations for business segments. This process is continually refined. In the third quarter of 2019, we made changes to the FTP process to more accurately reflect the cost of funds for loans. In the first quarter of 2017 we made changes to the FTP process and internal allocation of central expenses to better reflect the performance of business segments. Prior period amounts have been revised to reflect the impact of these changes had they been instituted for the periods presented. Total average loans and deposits presented for the banking segments include insignificant intercompany amounts between banking segments and may also include deposits with the Other segment.
As of December 31, 2019, our banking business is conducted through seven locally managed and branded segments in distinct geographic areas. Zions Bank operates 99 branches in Utah, 25 branches in Idaho, and one branch in Wyoming. CB&T operates 86 branches in California. Amegy operates 78 branches in Texas. NBAZ operates 58
branches in Arizona. NSB operates 50 branches in Nevada. Vectra operates 37 branches in Colorado and one branch in New Mexico. TCBW operates two branches in Washington and one branch in Oregon.
The operating segment identified as “Other” includes certain nonbank financial service subsidiaries, centralized back-office functions, and eliminations of transactions between segments. The major components of net interest income at the Bank’s back-office include the revenue associated with the investments securities portfolio and the offset of the FTP costs and benefits provided to the business segments.
The following schedule does not present total assets or income tax expense for each operating segment, but instead presents average loans, average deposits and income before income taxes because these are the metrics that management uses when evaluating performance and making decisions pertaining to the operating segments. The Bank's net interest income includes interest expense on borrowed funds. The condensed statement of income identifies the components of income and expense which affect the operating amounts presented in the Other segment.
The accounting policies of the individual operating segments are the same as those of the Bank. Transactions between operating segments are primarily conducted at fair value, resulting in profits that are eliminated for reporting consolidated results of operations.
The following is a summary of selected operating segment information:
(In millions)Zions BankAmegyCB&T
201920182017201920182017201920182017
SELECTED INCOME STATEMENT DATA
Net interest income$703  $673  $605  $497  $491  $453  $522  $513  $455  
Provision for credit losses18  8  20  9  (80) 20  7  15  (5) 
Net interest income after provision for credit losses
685  665  585  488  571  433  515  498  460  
Noninterest income150  150  148  138  126  116  88  82  75  
Noninterest expense471  462  432  344  344  340  316  308  299  
Income before income taxes$364  $353  $301  $282  $353  $209  $287  $272  $236  
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans$13,109  $12,643  $12,481  $12,235  $11,358  $11,021  $10,763  $10,033  $9,539  
Total average deposits15,870  15,410  15,986  11,627  11,160  11,096  11,522  11,268  11,030  
(In millions)NBAZNSBVectra
201920182017201920182017201920182017
SELECTED INCOME STATEMENT DATA
Net interest income$227  $218  $191  $153  $144  $123  $137  $131  $121  
Provision for credit losses2  8  (8) (1) 1  (11) 3  6  1  
Net interest income after provision for credit losses
225  210  199  154  143  134  134  125  120  
Noninterest income42  39  39  43  41  39  26  24  25  
Noninterest expense156  152  148  145  143  138  108  105  101  
Income before income taxes$111  $97  $90  $52  $41  $35  $52  $44  $44  
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans$4,774  $4,608  $4,267  $2,630  $2,394  $2,357  $3,109  $2,924  $2,644  
Total average deposits5,002  4,931  4,762  4,512  4,286  4,254  2,853  2,761  2,756  
(In millions)TCBWOtherConsolidated Bank
201920182017201920182017201920182017
SELECTED INCOME STATEMENT DATA
Net interest income$54  $53  $44  $(21) $7  $73  $2,272  $2,230  $2,065  
Provision for credit losses(1) 2  2  2  —  (2) 39  (40) 17  
Net interest income after provision for credit losses
55  51  42  (23) 7  75  2,233  2,270  2,048  
Noninterest income5  5  5  70  85  97  562  552  544  
Noninterest expense22  22  20  180  143  178  1,742  1,679  1,656  
Income (loss) before income taxes$38  $34  $27  $(133) $(51) $(6) $1,053  $1,143  $936  
SELECTED AVERAGE BALANCE SHEET DATA
Total average loans$1,194  $1,118  $926  $451  $347  $266  $48,265  $45,425  $43,501  
Total average deposits1,094  1,092  1,107  2,600  2,275  1,209  55,080  53,183  52,200